Consumer group MoneySavingExpert hits out at energy firms despite latest price cuts by Scottish Power

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Jessica Morris

Scottish Gas will cut gas prices by an average of 5.4 per cent (Source: Getty)

A consumer group has heaped pressure on Britain's biggest energy companies to slash customers' bills further, after Scottish Power became the latest provider to cut prices today.

"The real picture here is that even after these small cuts come into effect the vast majority of households in the UK will be massively overpaying for their energy," Martin Lewis, founder of MoneySavingExpert's cheap energy club, said.

Scottish Power said it will lower its standard tariff by an average of 5.4 per cent effective from March 15th.

"This latest price reduction means the average annual gas bill on standard tariff will reduce by £32 as of 15th March with over 1m customers benefiting from reduced price," Neil Clitheroe, ScottishPower's chief executive of retail and generation, said.

It follows rival E.on which has announced cuts to its gas prices by 5.1 per cent from 1 February, and SSE whose customers will enjoy a 5.3 per cent cut from March 29th.

But energy firms continue to come under fire as the price cuts don't correspond with their falling costs. Wholesale gas and electricity prices have fallen to a five-year low according to ICS, due to a mild winter and global commodities rout.

"The third of the big six sheep has bleated and joined the price cut pen – yet again though the amount is trivial. Just five per cent on gas only, not electricity - nothing close to the drop in wholesale prices – and it doesn’t even come into effect until after winter bills," Lewis added.